KONTAN.CO.ID - JAKARTA. The upward trend in crude palm oil (CPO) prices continues. In fact, the price of CPO in the world market managed to set a record high.
Then, in the midst of the upward trend in palm oil prices, what are the CPO-based stocks that can bring in cash for investors?
Based on Bloomberg, Wednesday (20/10), the price of CPO futures for January 2022 delivery on the Malaysia Derivatives Exchange made another record high after rising 2.47% to RM 5,083 per ton.
However, the increase in crude palm oil prices was not followed by the movement of a number of shares of CPO issuers. For example, the shares of PT Triputra Agro Persada Tbk (TAPG) which corrected 4.93% to a price of Rp 675 per share on Thursday (21/10).
The share price of PT PP London Sumatra Indonesia Tbk (LSIP) fell 1.41 percent to Rp 1,400 per share. The share price of PT Eagle High Plantations Tbk (BWPT) fell 1.02% to Rp 97 per share.
The share price of PT Tunas Baru Lampung Tbk (TBLA) which fell 0.56% to Rp 880 per share. Then the share price of PT Dharma Satya Nusantara Tbk (DSNG) fell 0.83% to a price of Rp 600 per share. The share price of PT Bakrie Sumatera Plantation Tbk (UNSP) edged down 0.38% to Rp 675 per share.
Erdhikha Elite Sekuritas analyst Ivan Kasulthan said that currently the majority of CPO sector stock movements have almost entered their saturation phase in the short term. This is because the shares of the CPO sector have strengthened strongly in early October 2021.
So, continued Ivan, if you look at it technically, investors are currently taking profit-taking actions to secure positions first. However, Ivan estimates that CPO stocks will still be quite good until early next year.
"This is supported by the still high demand from India and China," explained Ivan to Kontan.co.id, Thursday (21/10). Well, the high demand has become a positive sentiment for CPO stocks, followed by the swell of CPO commodity prices. Ivan predicts that the increase in CPO prices will continue for the medium term to early next year.
Ivan explained that the shares of the CPO sector have good prospects, especially for the short term. Moreover, there will be a celebration of the Diwali event in India which has the potential to raise the price of CPO commodities and will have a positive impact on the rally of CPO stocks.
From the ranks of shares in the CPO sector, Ivan recommended LSIP shares and PT Astra Agro Lestari Tbk (AALI) shares. According to him, the two stocks have fairly high liquidity and less aggressive volatility. So it is more suitable to be invested in the short to medium term.
LSIP's share price closed at Rp 1,400 on Thursday (21/10), down 20 points or 1.41% from the previous day. Although in a downward trend, LSIP's share price in the last 30 days still rose 325 points or 30.23%.
AALI's share price closed at Rp 10,250 on Thursday (21/10).up 75 points or 0.74%. In the past month, AALI's share price rose 1,825 points or 21.66%.
He gave a buy on weakness recommendation for AALI and LSIP stocks because the increase was quite significant and there would still be potential for further profit taking. The target price for LSIP shares is Rp 1,560 per share-Rp 1,610 per share and the target price for AALI shares is Rp 11,600 per share-Rp 13,000 per share.
Those are CPO-based stock recommendations for trading today, Friday, October 22, 2021. Remember, disclaimer on, all investment risks on the stock recommendations above are your own responsibility.